Arrangement to pay and mortgage application

[Timmytap18]

I did post in money but not many replies.

I'm hoping to apply for a mortage in the new-year. I checked my credit score on experian and it shows as good. I decided to get a free trial on check my file as they use all CRAs.

There is an arrangement to pay on a loan that I put in place years ago (stupidity of youth). I finished paying it in May 2018 so it will show until May 2024.

Will that have a big impact on a mortgage application? Will I have to wait for that to drop off?

Hmm not sure, but watching with interest.

Assuming this is the first house you'll have bought? I doubt one negative on your credit file will make a huge difference. You paid it off 5 years ago.. I think your overall recent pattern of repaying credit products (phone contract, credit card, furniture you may have bought etc) combined with a stable, adequate and regular income and the right level of deposit are more important than one bad mark from years ago. They only usually request your last 3 months bank statements and payslips (from memory) but will still do a credit check which will show you've resolved your debt issue a while ago.

Speak to a mortgage broker and they'll analyse your information and let you know realistically what your chances are and what budget is affordable for you. Ours charged about £170 for the last house we bought but it made the application process a breeze! Best of luck, have fun house hunting!